The leu continues its depreciation today, after the Bolojan Government fell through a vote of no confidence.
The National Bank of Romania announced on Wednesday an official exchange rate of 5.2688 lei for the euro, thus setting a new record.
The national currency has also decreased against other major currencies:
- The US dollar reached 4.4746 lei, up from a rate of 4.4644 lei recorded on Tuesday.
- The British pound is quoted by the NBR at 6.0960 lei, compared to 6.0453 lei.
- The Swiss franc is quoted at 5.7429 lei, up from a rate of 5.6974 lei.
- Gold was quoted at 676.0740 lei per gram, compared to 653.5812 lei.
The leu has lost 2.7% against the euro in the last two weeks
The leu has lost 2.7% against the euro in the last two weeks, with a 0.8% depreciation on Tuesday, one of the largest declines among emerging market currencies, writes Bloomberg.
According to the publication, unlike other banks in the region that allow exchange rate flexibility, Romania keeps the leu within an unspecified trading band against the euro.
Authorities consider this additional stability as an anchor, which prevented further acceleration of inflation last year when the population faced budgetary measures aimed at reducing the EU's largest budget deficit.
The fall of the government at a time when the country is facing growth and inflation difficulties puts the central bank in a difficult position regarding the leu, Bloomberg further reports.
The series of highs: how the leu depreciated in a few days
The rapid decline of the leu began on April 29, when the euro exceeded the threshold of 5.10 lei at the NBR official exchange rate, for the first time in the last year.
On April 30, the increase continued, and the NBR announced a new record of 5.1417 lei/euro.
On Monday, the euro rose to 5.1998 lei, and on Tuesday, the day of the vote of no confidence, the National Bank of Romania announced an official exchange rate of 5.218 lei for the euro.
- Political crisis strongly depreciates the leu. Euro reaches its highest level in history. NBR's reaction
- The leu continues to depreciate. Euro sets a new record and approaches 5.2 lei
Photo: NBR
What solution does the NBR have to stop the historic depreciation of the leu
The historic depreciation of the national currency tends to intensify and, beyond intervention in the foreign exchange market, the emergency solution could be to raise interest rates to temper the weakening of the leu, says economic consultant Adrian Negrescu.
"Beyond intervention in the foreign exchange market, I believe the emergency solution will be to raise interest rates to temper this looming depreciation that is emerging on the horizon. An emergency session of the NBR could lead to an increase in interest rates in an attempt to provide foreign investors with reasons to maintain their investments in Romania.
Unfortunately, such a decision will inherently lead to increased financing costs for the economy, for ordinary people. It will, in fact, lead to a recession," explained Adrian Negrescu on Tuesday in a post on Facebook.
According to him, the NBR is faced with the choice between the risk of hyperinflation generated by the depreciation of the exchange rate and the recession that is already in place.
"What will the NBR choose - hyperinflation triggered by the depreciation of the exchange rate or the recession we have been in for several months now? One thing is certain - One misfortune never comes alone," added the economic consultant.
Previous records
The previous historical peak before the current period was recorded on May 8, 2025, when the euro reached 5.1222 lei at the NBR exchange rate, in a tense context generated by the presidential elections.
After that period, the exchange rate did not exceed the threshold of 5.10 lei until May 2026, when internal political tensions brought pressure back on the national currency.